24 September 2013

All You Need to Know

Here's all you need to know to understand where the future is going:
According the findings of an IHS report coming tomorrow (but shared with AllThingsD today), Apple spends at least $191 on components to build a 16 gigabyte iPhone 5s. The cost rises to $210 for a 64GB unit. The cost of assembly adds another $8 per unit, bringing the range to between $199 and $218.

The retail of a 16G 5s, no contract, is $649. Lots more in China.

Labor is 1.2% of the retail price. The notion that wages are driving capital out of business is silly.

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